Introduction
The Foreign Contribution (Regulation) Amendment Act 2020
(Amendment Act) has been notified by the Central Government
(Government) on 29 September 2020, to amend certain provisions of
the Foreign Contribution (Regulation) Act 2010 (Act / FCRA).
As stated in the statement of objects, the Government claims
that the object of the Act is to strengthen compliance, enhance
transparency and accountability in the receipt and utilisation of
foreign contributions and facilitating genuine non-governmental
organisations or associations who are working for the welfare of
the society.
The Amendment Act has come into force on 29 September 2020 amid
several instances where organizations failed to ensure basic
statutory compliances such as maintenance of proper accounts and
submission of returns and it led to a situation where the
Government had to cancel registrations of various
organizations.
